Collections Needs A Culture Of Celebration !

Accounts Receivable Management (or any management) is not just about systems, processes, customer calls or any work flow issues.  Granted, those are pretty important things in improving a company's cash flow. But I am going to digress a bit and "talk" briefly about another type of implementation....instilling a culture of "celebration" in the work place.  My musings here are based upon my personal experiences.

 

While attending a NACM conference awhile back, I was given the book "Nuts"  by Kevin and Jackie Freiberg. The non fiction book is principally about Herb Kelleher and his founding of Southwest Airlines.  I was profoundly influenced by this book. The timing of my reading of it, could not have been at a better time. My team and I just implemented a collections system which automated and greatly enhanced our receivable collections.

 

The Kelleher's approach to management (I think) is unique, refreshing and makes good business sense.  Southwest Airlines creates good customer service by putting the employee first, not the customer.  But, by putting the employee first, good customer service becomes a natural by product of  happy employees. This is in mark contrast to some employers who say they put the customer first, and may not take good enough care of their employees. Unhappy employees (in the long run) won't beget happy customers.

 

But the celebrations in the work place are not devoid of work, by the manager.  Kelleher mentioned that celebrations need the following elements: they must be cost effective, have a theme and be well planned.

 

Its the same as any business project.  But if you do it all correctly,  you can repeat the celebrations time and again, because of their favorable impact on the work environment.

 

Here are a couple of examples of how Kelleher's philosophy helped me.

 

After the success of the implementation of our automated collection system,  our collectors were meeting quarter after quarter of increasingly aggressive cash goal targets.  I told them they were like magicians always pulling rabbits out of a hat. So,  I took the metaphor and made it reality.  I searched for a local magician and hired him for an hour (cost effective).  Then (with the approval of my executive and local HR) I announced to all employees of a magic show saluting the collector's magical feats of surpassing their cash goals (the theme).

 

I then secured the cafeteria, for all employees,  to come and watch the show (the planning of it). At the very end,  the magician pulled a rabbit out of the hat.....and I gave a brief speech saluting the collectors accomplishments.  Public praise in front of peers was an added bonus.

 

Now, being human,  hubris sometimes happens when you have too much success too soon.  That happened to me after our successful collections software implementation (and the 50% DSO reduction).  I then made the cash goals tooooooo aggressive and, against the advise of my team,  I set them in stone for the quarter.

 

Well.....those goals fell short.  What happened next? I took a pie in the face...literally.

 

That "celebration" was a public announcement  (from me) about me taking a pie in the face from my team. The pies were of the Soupy Sales variety...crust with shaving cream.   This event happened 10 years ago....and they still talk about it. All of Kelleher's elements of : cost effectiveness, a theme and well planning were evoked.

 

Would you take a pie in the face for your team?